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Dow Jones Industrial Average Continues to Fall as China Shows Signs of Economic Weakness

The Dow Jones Industrial Average dropped sharply Monday after the People's Bank of China (PBOC) took drastic action to reduce the amount of cash its financial institutions need to hold as reserves.

Such action is designed to spur lending as the country continues to battle the United States over trade.

This is the fourth time that China has slashed what is known as the reserve requirement ratio (RRR) in 2018.

China's Shanghai Composite was off 3.7%.